Chapter 7, Problem 2DTM

Terri is looking to purchase a used car for $15,000 and received the following auto loan offers. Her goal is to find the option with the lowest monthly payment. Which option should Terri choose to meet her goal? Note you may need to use a financial calculator to answer this question. Select answer from the options below There is not enough information to answer this question. A 60-month loan with a fixed 3.65% interest rate. A 48-month loan with a fixed 2.76% interest rate. A 36-month loan with a fixed 2.72% interest rate.

They decide to shop for furnishings for the new house.  They choose items that amount to $2400.00.  The store has 2 fixed installment loan options for purchasing:   Option 1: 20% down payment and financing at 7% simple interest per year for 2 years.   Option 2:  no down payment and financing at 7.75% simple interest for 3 years.   Answer each of the following questions separately, showing all your work to reach each answer.

A couple plans to purchase a vacation home. The bank requires a 5% down payment on the $450,000 vacation home. The couple will finance the rest of the cost with a fixed-rate mortgage at 9% annual interest with monthly payments over 30 years. Complete the parts below. Do not round any intermediate computations. Round your final answers to the nearest cent if necessary. If necessary, refer to the list of financial formulas. (a) Find the required down payment. (b) Find the amount of the mortgage. (c) Find the monthly payment.

After starting your full-time job out of college, you decide to buy a new car for $85,000. Create a complete amortization table in excel for this car loan: You make 84 equal end-of-month payments. The discount rate is 6.5 percent compounded quarterly. How much would you owe after the 75 th payment? Please show both regualr and formula format of the spreadsheet.

不 Claire needs to borrow $5000 to pay for NHL season tickets for her family. She can borrow from a finance company (at 2.78% add on interest for 5 years) or she can borrow from credit union (60 monthly payments of $03 78 each). Find the APR for each loan using a TVM solver, and decide which one is Claire's better choice The APR for the finance company loan is (Type an integer or decimal rounded to the nearest hundredth as needed)

The Becker family is getting a home loan to finance a $260,000 mortgage. While looking for a mortgage, they found two alternatives: Mortgage A 30-year loan with an interest rate of 3.611% and a monthly payment of $1,184. Mortgage B 15-year loan with an interest rate of 2.7% Recall: Calculate the total amount paid for Mortgage A. Calculate the total interest paid for Mortgage A. Calculate the monthly payment for Mortgage B. Calculate the total amount paid for Mortgage B. Calculate the total interest paid for Mortgage B. Write a two or more sentences giving the Becker family some advice about which mortgage to choose. Why might the Becker family not take your advice from part c)? Answer in one or two sentences.

4) Brenda is buying a living room set for her home. At Furniture, Inc., she picks out a set for a total cash price of $1,899 The salesperson tells her if she qualifies for an installment loan, she may pay 10% down and finance the balance with payments of $88.35 per month for 24 months?

​Angela's bank gave her a 2​-year ​add-on interest loan for ​$6,120 to pay for new equipment for her antiques restoration business. The annual interest rate is 8.28​%. How much interest will she​ pay? What are her monthly​ payments?       Question content area bottom Part 1 She will pay ​$enter your response here in interest on the loan. ​(Round to the nearest​ cent.) Part 2 Her monthly payments are ​$enter your response here. ​(Round to the nearest​ cent.)

To help open up a wine bar, Yoko borrowed money from her credit union. She took out a personal, amortized loan for $40,500, at an interest rate of 6.2%, with monthly payments for a term of 6 years. For each part, do not round any intermediate computations and round your final answers to the nearest cent. If necessary, refer to the list of financial formulas. (a) Find Yoko's monthly payment. (b) If Yoko pays the monthly payment each month for the full term, find her total amount to repay the loan. (c) If Yoko pays the monthly payment each month for the full term, find the total amount of interest she will pay. %24 %24